26 April 2018

TriOptima compression cycle eliminates Thomson CDS trades

26 August 2009  |  1879 views  |  0 Source: TriOptima

TriOptima announced today that it has completed the first portfolio compression cycle following a restructuring event under the newly-implemented ISDA 'Small Bang Protocol'.

With 28 dealers participating, 6850 Thomson single name trades with a notional value of $16 billion USD were eliminated on a net basis.

Once a restructuring credit event had been determined by the ISDA EMEA Credit Derivatives Determinations Committee, TriOptima offered its triReduce portfolio compression service as the first step in reducing the number of outstanding Thomson trades prior to an auction settlement.

""There were a significant number of European iTraxx index contracts affected by Thomson's restructuring, which resulted in increased operational risk due to the volume of new single name contracts created. We worked in close consultation with the industry to ensure the maximum reduction in both ticket count and gross notional in advance of the auction settlement process to reduce this risk," said Ulf Andersson, Global Business Manager for triReduce. "We are pleased that we are able to support the industry in its important efforts to achieve transparency, liquidity and operational efficiency."

In anticipation of the Thomson restructuring credit event, TriOptima had completed a portfolio compression cycle on August 14 in European index tranches including the Thomson name, eliminating 2515 tranche trades with a notional value of $113 Billion USD. "Eliminating tranche trades prior to the auction settlement also achieves significant risk reduction," said Henrik Nilson, Head of Business Development, TriOptima. "The industry is pursuing all opportunities to ensure the smooth operation of the new settlement process."

ISDA's 'Small Bang Protocol' was developed following the publishing of the 'Big Bang Protocol' in March 2009. The 'Small Bang Protocol' includes a series of amendments suggested by market participants and allows for the incorporation of auction settlement terms following a Restructuring Credit Event into standard CDS documentation.

Comments: (0)

Comment on this story (membership required)

Related company news


Related blogs

Create a blog about this story (membership required)
Visit http://go.jumio.com/finextraAdVisit www.nextgenbanking.co.ukvisit www.ebaday.com

Top topics

Most viewed Most shared
'Fake data' will make banks vulnerable - Accenture'Fake data' will make banks vulnerable - A...
10400 views comments | 28 tweets | 36 linkedin
Irish central bank tunes in to fintechIrish central bank tunes in to fintech
9662 views comments | 20 tweets | 21 linkedin
JPMorgan to roll out Voice ID; begins branch expansionJPMorgan to roll out Voice ID; begins bran...
8864 views comments | 6 tweets | 8 linkedin
TransferWise launches multi-country bank accountTransferWise launches multi-country bank a...
8669 views comments | 26 tweets | 21 linkedin
Physical cash retains its popularity in face of electronic onslaughtPhysical cash retains its popularity in fa...
8621 views comments | 15 tweets | 17 linkedin

Featured job

(GBP Equivalent) Six-Figure Base + OTE + Benefits
New York City, NY - USA

Find your next job